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I see the other expert has opted out. Your whole question seems to hing on assuming a check is tangible property.
the other expert is generally correct.
A check is not considered tangible property because in and of itself it represents bank deposits which are intangible. however depending on exact circumstances it could mutate to tangilbe property. Please read on.
by definition tangible property does not include a check used to transfer money from one institution to another or to make payment to an individual.
A check is a cash instrument and not tangible property. this is because bank deposits are not considered tangible.
Also it is true that non-resident aliens are not subject to gift tax unless the property they are gifting is resident in the U.S.
If the donor is not resident in the U.S.
AND if the donation (or gift) is a check drawn on a foreign bank, transferring money to a resident of the U.S. or the residents bank, there is no gift tax due.
HOWEVER: if the money comes from a U.S.BAnk then the money is considered situated in the U.S. A check per se is intangible because it represents deposits, but cash from a U.S. bank account to a resident even if owned by the non-resident would be subject to gift tax.
Read this article: http://www.phillipsnizer.com/pdf/Article-YouMustRememberThisT&E-MG12-05.pdf
It is possilbe that this could be mutated to gift tangible property and subject to gift tax.
Thank you for your information. However I do find the the answer is in the form 709 instruction.non resident alient do not have unified credit against gift tax. The form specifically state the amount is zero.on line 11. any non resident alien give tangible personal property in usa ( more than annual exclusion) to any one is subject to gift tax. certanin intangible is excluded.My question remains: is personal check written in usa bank an intagible personal property . hopefuly some one will give more definitedly answer.
The check is not tangible personal property.
the money transfered to a u.s. resident from a U..S. bank account is.
I see we may have a language and communication problem. I am being legalistic when I say the check is not tangible. Remember I said some intangible property can be mutated. So maybe I and the other expert missed the exact point of your question.
When we are legalistic the check is not tangible property, neither are bank deposits.
However when the check is cashed, the cash is tangible. I do not expect you to understand these nuances.
Your botXXXXX XXXXXne is that you need to know if there is a gift tax reporting requirement on the money, is that not correct?
The answer is yes, because it is a U.S. bank. The article I provided discusses these issues in detail.
So you want a reference. To me a reference comes in the form of:
Internal revenue Code
Private Letter Rulings by the IRS
IRS general Council rulings or memorandums explaining the IRS position.
I understand fully the tax issue related to gifting from Non-residents to residents. I can discuss them freely;
The issue is you are demanding evidence to support my statements and statements which I have spent years accumulating as part of my every day practice. That takes time, because now i need to search out those rulings and memorandums which add clarity to the Internal REvenue code.
Is this a classroom assignment or a real situation?
No problem. I will find your references for you.
I had to got to a tax conference with the IRS in Atlanta. I am the chairperson so I had to attend. I am in Atlanta now. I will have a response to you to morrow if that is ok. In the mean time I will opt out in case someone else can provide the information sooner.